The VMware landscape is shifting fast — and if you rely on VMware for your business, you need to be ready. Broadcom’s acquisition of VMware is bringing major changes in licensing, pricing, and support. At Convergent, we’re staying ahead of these updates so we can help our customers make smart moves and avoid costly surprises. Here’s a quick breakdown of what’s happening — and why it matters.
Transition to Subscription-Only Licensing
Broadcom has officially ended the sale of perpetual VMware licenses. If you have a perpetual license today, you can continue to use it — but you can no longer renew your Service and Support (SnS) contracts once they expire.
Going forward, all VMware licensing will be subscription-based. If you want continued updates, support, and compliance protection, you’ll need to transition.
What it means for you: Now is the time to review your contracts and plan your shift to subscription models.
Late Renewal Penalties Are Coming
Starting April 10, 2025, late subscription renewals will come with a 20% penalty.
The penalty will apply retroactively from the subscription anniversary date.
What it means for you: Timely renewals are critical — missing your renewal could cost you significantly more.
Simplified Portfolio, Higher Costs
Broadcom is “simplifying” the VMware product line by bundling features and reducing SKUs. While it sounds good on paper, for many customers, it means paying for features you don’t currently use.
Prices are rising sharply:
- Average increases of 100%–400%
- Some customers seeing up to 800% increases without a multi-year commitment
What it means for you: If you’re facing renewal, a 3-year term could help offset some of the cost.
Increased Audit Activity
Broadcom is stepping up compliance audits to enforce the new subscription model. This means that license tracking, inventory management, and reporting will become even more important — and mistakes could be costly.
What it means for you: Knowing exactly what you own and what’s supported will help you avoid unwanted audit findings.
How Convergent Can Help
Don’t wait for your renewal date to creep up — or worse, an audit. Convergent can help you build a smarter IT plan now, before the landscape changes even more. Broadcom’s changes introduce risk but also opportunity.
Convergent is here to help you:
✅ Review your VMware environment
✅ Explore cloud migration options
✅ Ensure you’re compliant and audit-ready
✅ Lock in better renewal pricing through strategic planning
